MATH 533 ( Applied Managerial Statistics ) Final Exam Answers

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MATH 533 ( Applied Managerial Statistics ) Final Exam Answers

MATH 533 Final Exam Set 1
1.

(TCO D) PuttingPeople2Work has a growing business placing out-of-work MBAs. They claim they can place
a client in a job in their field in less than 36 weeks. You are given the following data from a sample.
Sample size: 100
Population standard deviation: 5
Sample mean: 34.2
Formulate a hypothesis test to evaluate the claim. (Points : 10)
Ho: = 36; Ha: 36
Ho: 36; Ha: < 36
Ho: 34.2; Ha: > 34.2
Ho: > 36; Ha: 36
Ans. b.
H0 must always have equal sign, < 36 weeks
2. (TCO B) The Republican party is interested in studying the number of republicans that might vote in a particular
congressional district. Assume that the number of voters is binomially distributed by party affiliation (either republican
or not republican). If 10 people show up at the polls, determine the following:
Binomial distribution
10
n
0.5
p
cumulative
probability
0
0.00098
0.00098
1
0.00977
0.01074
2
0.04395
0.05469
3
0.11719
0.17188
4
0.20508
0.37695
5
0.24609
0.62305
6
0.20508
0.82813
7
0.11719
0.94531
8
0.04395
0.98926
9
0.00977
0.99902
10
0.00098
1.00000
What is the probability that no more than four will be republicans? (Points : 10)
38%
12%
21%
X

P(X)

62%
Ans. a
look at x=4, cumulative probability
3. (TCO A) Company ABC had sales per month as listed below. Using the Minitab output given, determine:
(A) Range (5 points);
(B) Median (5 points); and
(C) The range of the data that would contain 68% of the results. (5 points).
Raw data: sales/month (Millions of $)
23
45
34
34
56
67
54
34
45
56
23
19
Descriptive Statistics: Sales
Variable
Total Count
Mean
StDev
Variance
Minimum
Maximum
Range
Sales
12
40.83
15.39
236.88
19.00
67.00
48.00

Stem-and-Leaf Display: Sales

Stem-and-leaf of Sales N = 12
Leaf Unit = 1.0
1
1
9
3
2
33
3
2
6
3
444
6
3
6
4
6
4
55
4
5
4
3
5
66
1
6
1
6
7
Reference:
(TCO A) Company ABC had sales per month as listed below. Using the MegaStat output given, determine:
(A) Range (5 points)
(B) Median (5 points)
(C) The range of the data that would contain 68% of the results. (5 points)
Raw data: sales/month (Millions of $)
19
34

23
34
56
45
35
36
46
47
19
23
count 12
mean 34.75
sample variance 146.20
sample standard deviation 12.09
minimum 19
maximum 56
range 37
Stem and Leaf plot for # 1
stem unit = 10
leaf unit = 1
count
12.00000
mean
34.75000
sample variance
146.20455
sample standard deviation 12.09151
minimum
19.00000
maximum
56.00000
range
37.00000
1st quartile
median
3rd quartile
interquartile range
mode

23.00000
34.50000
45.25000
22.25000
19.00000

4. (TCO C, D) Tesla Motors needs to buy axles for their new car. They are considering using Chris Cross
Manufacturing as a vendor. Teslas requirement is that 95% of the axles are 100 cm 2 cm. The following data is
from a test run from Chris Cross Manufacturing. Should Tesla select them as a vendor? Explain your answer.
Descriptive statistics

count
mean
sample variance
sample standard deviation
minimum
maximum
range
population variance
population standard deviation

16
99.850
4.627
2.151
96.9
104
7.1
4.338
2.083

standard error of the mean

tolerance interval 95.45% lower
tolerance interval 95.45% upper
margin of error
1st quartile
median
3rd quartile
interquartile range
mode

0.538
95.548
104.152
4.302
98.850
99.200
100.550
1.700
103.000

(Points : 25)
Reference: Chegg
Tesla Motors needs to buy axles for their new car. They are considering using Chris Cross Manufacturing as a
vendor. Teslas requirement is that 95% of the axles are 100 cm 5 cm. The following data is MegaStat output from a
test run from Chris Cross Manufacturing.
Descriptive statistics
count: 16
mean: 99.938
sample variance: 2.313
sample standard deviation: 1.521
minimum: 97
maximum: 102.9
range: 5.9
population variance: 2.169
population standard deviation: 1.473
standard error of the mean: 0.380
tollerance interval 95.45% lower: 96.896
tolerance interval 95.45% upper: 102.979
half-width: 3.042
1st quartile: 98.900
median: 99.850
3rd quartile: 100.475
interquartile range: 1.575
mode: 98.900
Question: Should Tesla select them as a vendor? Explain your answer.
Answers (1)

Given that,
Tesla Motors needs to buy axles for their new car.
They are considering using Chris Cross Manufacturing as a vendor.
Teslas requirement is that 95% of the axles are 100 cm 5 cm.
The following data is MegaStat output from a test run from Chris
Cross Manufacturing:
Descriptive statistics
count: 16
mean: 99.938
sample variance: 2.313
sample standard deviation: 1.521

minimum: 97
maximum: 102.9
range: 5.9
population variance: 2.169
population standard deviation: 1.473
standard error of the mean: 0.380
tollerance interval 95.45% lower: 96.896
tolerance interval 95.45% upper: 102.979
half-width: 3.042
1st quartile: 98.900
median: 99.850
3rd quartile: 100.475
interquartile range: 1.575
mode: 98.900
Now, we have to construct 95% confidence interval for the data from
the Chris Cross Manufacturing
5.

(TCO D) A PC manufacturer claims that no more than 2% of their machines are defective. In a random
sample of 100 machines, it is found that 4.5% are defective. The manufacturer claims this is a fluke of the sample. At
a .02 level of significance, test the manufacturers claim, and explain your answer.
Test and CI for One Proportion
Test of p = 0.02 vs p > 0.02
Sample
X N
1
4 100
Reference:
Set up the hypotheses:
H0: p <= 0.02
Ha: p > 0.02

Sample p
0.040000

98% Lower Bound

0.000000

Z-Value
1.43

P-Value
0.077

This is a one tailed test, since we will only reject for high proportions.
Since we are using a 0.02 level of significance (its just chance that the hypotheses happen to have the same
value as this), well reject the null hypothesis if our P Value is less than 0.02.
The computed P value from Megastat was 0.0371.
This is higher than the significance level.
Therefore, we do not reject H0:.
We can say that the proportion is still less than or equal to 2%, and this was a fluke.
Final Page 2
1. (TCO B) The following table gives the number of a. Total South probability 1773/2459 b. Total
Midwest Divide:
visits to recreational facilities by kind and
people =+
divide = approx
Midwest local
geographical region.
2459
West these:
0.721
= 298 park =
(Points : 30)
=
29
Ans.
1368
East South Midwest West Totals
+ 405
=

Local
55
Park
National
233
Park
State Park 100
Totals
388

328 29

52

464

514 204

251 1202

526 65
1368 298

102 793
405 2459

(A) Referring to the above table, if a visitor is

chosen at random, what is the probability that he or
she is either from the South or from the West? (15
points)
(B) Referring to the above table, given that the
visitor is from the Midwest, what is the probability
that he or she visited a local park? (15 points)
2.

1773

(TCO B, F) The length of time Americans exercise each week is normally distributed with a mean of 15.8
minutes and a standard deviation of 2.2 minutes
X
P(Xx)
P(Xx)
Mean
Std dev
11
.0146
.9854
15.8
2.2
15
.3581
.6419
15.8
2.2
21
.9910
.0090
15.8
2.2
24
.9999
.0001
15.8
2.2
p(lower)
p(upper)
(A) Analyze the output above to determine what percentage of Americans will exercise between 11 and 21 minutes
per week. (15 points)
(B) What percentage of Americans will exercise less than 15 minutes? If 1000 Americans were evaluated, how many
would you expect to have exercised less than 15 minutes? (15 points) (Points : 30)
MATH 533 Final Exam Set 2

1.

(TCO A) Seventeen salespeople reported the following number of sales calls completed last month.
93
82
81
82
97
102
107
119
88
91
83
93
73
100
102
Compute the mean, median, mode, and standard deviation, Q1, Q3, Min, and Max for the above sample
data on number of sales calls per month.
b. In the context of this situation, interpret the Median, Q1, and Q3. (Points : 33)
72
86

3.

2.

(TCO B) Cedar Home Furnishings has collected data on their customers in terms of whether they reside in
an urban location or a suburban location, as well as rating the customers as either good, borderline, or poor. The
data is below.
Urban
Suburban
Total
Good
60
168
228
Borderline
36
72
108
Poor
24
40
64
Total
120
280
400
If you choose a customer at random, then find the probability that the customer
a. is considered borderline.

3.

(TCO B) Historically, 70% of your customers at Rodale Emporium pay for their purchases using credit cards.
In a sample of 20 customers, find the probability that
a. exactly 14 customers will pay for their purchases using credit cards.

5.

(TCO C) An operations analyst from an airline company has been asked to develop a fairly accurate
estimate of the mean refueling and baggage handling time at a foreign airport. A random sample of 36 refueling and
baggage handling times yields the following results.
Sample Size = 36
Sample Mean = 24.2 minutes
Sample Standard Deviation = 4.2 minutes
a. Compute the 90% confidence interval for the population mean refueling and baggage time.

6.

(TCO C) The manufacturer of a certain brand of toothpaste claims that a high percentage of dentists
recommend the use of their toothpaste. A random sample of 400 dentists results in 310 recommending their
toothpaste.
a. Compute the 99% confidence interval for the population proportion of dentists who recommend the use of this
toothpaste.

7.

(TCO D) A Ford Motor Company quality improvement team believes that its recently implemented defect
reduction program has reduced the proportion of paint defects. Prior to the implementation of the program, the
proportion of paint defects was .03 and had been stationary for the past 6 months. Ford selects a random sample of
2,000 cars built after the implementation of the defect reduction program. There were 45 cars with paint defects in
that sample. Does the sample data provide evidence to conclude that the proportion of paint defects is now less
than .03 (with a = .01)? Use the hypothesis testing procedure outlined below.
a. Formulate the null and alternative hypotheses.

8.

(TCO D) A new car dealer calculates that the dealership must average more than 4.5% profit on sales of
new cars. A random sample of 81 cars gives the following result.
Sample Size = 81
Sample Mean = 4.97%
Sample Standard Deviation = 1.8%
Does the sample data provide evidence to conclude that the dealership averages more than 4.5% profit on sales of
new cars (using a = .10)? Use the hypothesis testing procedure outlined below.
a. Formulate the null and alternative hypotheses.

1.

(TCO E) Bill McFarland is a real estate broker who specializes in selling farmland in a large western state.
Because Bill advises many of his clients about pricing their land, he is interested in developing a pricing formula of
some type. He feels he could increase his business significantly if he could accurately determine the value of a
farmers land. A geologist tells Bill that the soil and rock characteristics in most of the area that Bill sells do not vary
much. Thus the price of land should depend greatly on acreage. Bill selects a sample of 30 plots recently sold. The
data is found below (in Minitab), where X=Acreage and Y=Price ($1,000s).
PRICE
ACREAGE
PREDICT
60
20.0
50
130
40.5
250
25
10.2
300
100.0

85
182
115
24
60
92
77
122
41
200
42
60
20
145
61
235
250
278
118
46
69
220
235
50
25
290

30.0
56.5
41.0
10.0
18.5
30.0
25.6
42.0
14.0
70.0
13.0
21.6
6.5
45.0
19.2
80.0
90.0
95.0
41.0
14.0
22.0
81.5
78.0
16.0
10.0
100.0

Correlations: PRICE, ACREAGE

Pearson correlation of PRICE and ACREAGE = 0.997
P-Value = 0.000
Regression Analysis: PRICE versus ACREAGE
The regression equation is
PRICE = 2.26 + 2.89 ACREAGE
Predictor
Coef SE Coef
T
P
Constant
2.257 2.231 1.01 0.320
ACREAGE 2.89202 0.04353 66.44 0.000
S = 7.21461 R-Sq = 99.4% R-Sq(adj) = 99.3%
Analysis of Variance
Source
DF
SS
MS
F
P
Regression
1 229757 229757 4414.11 0.000
Residual Error 28 1457
52
Total
29 231215
Predicted Values for New Observations
New Obs
Fit SE Fit
95% CI
95% PI
1 146.86 1.37 (144.05, 149.66) (131.82, 161.90)
2 725.26 9.18 (706.46, 744.06) (701.35, 749.17)XX

1.

1.

XX denotes a point that is an extreme outlier in the predictors.

Values of Predictors for New Observations
New Obs ACREAGE
1
50
2
250
Analyze the above output to determine the regression equation.

(TCO E) An insurance firm wishes to study the relationship between driving experience (X1, in years),
number of driving violations in the past three years (X2), and current monthly auto insurance premium (Y). A sample
of 12 insured drivers is selected at random. The data is given below (in MINITAB):
Y
X1
X2
Predict X1
Predict X2
74
5
2
8
1
38
14
0
50
6
1
63
10
3
97
4
6
55
8
2
57
11
3
43
16
1
99
3
5
46
9
1
35
19
0
60
13
3
Regression Analysis: Y versus X1, X2

The regression equation is

Y = 55.1 1.37 X1 + 8.05 X2
Predictor Coef SE Coef
T
P
Constant 55.138 7.309 7.54 0.000
X1
-1.3736 0.4885 -2.81 0.020
X2
8.053 1.307 6.16 0.000
S = 6.07296 R-Sq = 93.1% R-Sq(adj) = 91.6%
Analysis of Variance
Source
DF
SS
MS
F
P
Regression
2 4490.3 2245.2 60.88 0.000
Residual Error 9 331.9 36.9
Total
11 4822.3
Predicted Values for New Observations
New Obs Fit SE Fit
95% CI
95% PI
1 52.20 2.91 (45.62, 58.79) (36.97, 67.44)
Values of Predictors for New Observations
New Obs X1 X2
1 8.00 1.00
Correlations: Y, X1, X2

Y
X1
X1 -0.800
0.002
X2 0.933 -0.660
0.000 0.020
Cell Contents: Pearson correlation
P-Value
a. Analyze the above output to determine the multiple regression equation.

MATH 533 Final Exam Set 3

MATH 533 Final Exam Set 4